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The pharmaceutical industry is evolving with the rapid adoption of personalized medicines and RPM technology, which should drive growth. Additionally, pharmaceutical stocks with strong fundamentals, AstraZeneca (AZN) and Bristol-Myers Squibb (BMY), may be ideal buys in a recession lurking. However, SNDL (SNDL) may be best avoided. Read on to find out why.
The use of cutting edge digital platforms, big data analytics, cloud computing and artificial intelligence (AI) are transforming the pharmaceutical sector. Moreover, with the threat of an economic recession looming, investment in the pharmaceutical industry may be ideal as demand for its products and services is inelastic.
Quality pharmaceutical stocks are owned by AstraZeneca PLC (AZN) and Bristol-Myers Squibb (BMY) are useful for hedging against market uncertainty. However, SNDL Inc. (SNDL) may not be worth owning. This article will discuss these strains in detail.
The healthcare industry is being revolutionized by modern technology. Additionally, the growing market for personalized medicine is a significant growth driver for the industry.The global personalized medicine market is expected to expand rapidly CAGR 7% From 2022 to 2030.
Additionally, US healthcare systems and hospitals are rapidly transitioning to remote patient monitoring (RPM) technology to improve outcomes and reduce costs. According to Research and Markets, the global RPM system market is $1.7 billion by 2027up nearly 128% from the $745.7 million opportunity the market currently represents.
Stocks to buy:
AstraZeneca PLC (AZN)
Headquartered in Cambridge, UK, AZN is a biopharmaceutical company that develops, manufactures and markets pharmaceuticals. We serve primary care and specialist physicians through agents and community representatives.
On February 2, 2023, AZN and Amgen Inc. (AMGN) TEZSPIRE is approved in the US for self-administration in a pre-filled, single-use pen for patients 12 years and older with severe asthma.
TEZSPIRE is the only biologic approved for severe asthma with no phenotypic or biomarker restrictions on the approved label. This should help AZN meet the unmet needs of asthmatics.
AZN’s gross profit and EBITDA margin for the last 12 months were 80.57% and 31.33%, which are 43.9% and 738.1% higher than the industry average of 55.99% and 3.74%, respectively.
On February 9, AZN announced a quarterly dividend of $0.99 per share to be paid on March 27, 2023. The company has paid a dividend for his 23rd consecutive year.
AZN’s four-year average dividend yield is 2.68%, but an annual dividend of $1.97 translates to a 3.02% yield at current market prices. AZN has paid dividends for 23 consecutive years. AZN’s dividend payout has grown at a CAGR of 1.9% over the past three years.
For the fourth quarter of fiscal 2022, which ended December 31, 2022, AZN’s gross profit increased 12.5% year-over-year to $8.31 billion. Earnings for that period totaled $902 million, compared to his loss of $346 million in the same period last year.
EPS was $0.58, compared to a loss per share of $0.22 in the year-ago quarter. The company reported his EBITDA of $2.57 billion, up 35.5% from the year-ago quarter.
Street expects AZN’s revenue to grow 3.6% year over year to $45.96 billion in 2023. EPS is estimated to be $4.65 this year, up 39.6% year-over-year. AZN beat consensus earnings estimates in three of his four subsequent quarters. This is impressive.
Over the past six months, the stock has gained 5.5% and closed its last trading session at $65.21. There is his 24 month beta of 0.20.
of AZN POWR rating It reflects its promising prospects. The stock has an overall rating of A, which translates to a strong buy in our proprietary rating system. The POWR Rating is calculated by considering 118 different factors, with each factor being optimally weighted.
There are also B grades for Growth, Stability, Sentiment, and Quality.The stock ranks 9th out of 172 shares Medical – Pharmaceuticals industry.
In addition to the above, we also evaluated AZN’s value and momentum.Get All AZN Ratings here.
Bristol-Myers Squibb (BMY)
BMY is a biopharmaceutical company providing medicines to treat hematology, oncology, cardiovascular, immunology, fibrosis, neuroscience and COVID-19 disease.
On February 28, BMY received a Supplemental Biologics License Application (sBLA) from the U.S. Food and Drug Administration (FDA) and a Type II Variation Marketing Authorization Application (MAA) for Opdivo (nivolumab) from the European Medicines Agency (EMA). announced that it has been verified. ) As monotherapy in the adjuvant setting for the treatment of completely resected patients with stage IIB or IIC melanoma.
Dr. Gina Fusaro, vice president and development program leader at BMY, said: “Data from the CheckMate -76K test Opdivo It can be used in patients with this early stage of cancer. We look forward to working with the U.S. Food and Drug Administration and the European Medicines Agency to provide patients with stage IIB or IIC melanoma with treatment options that may help prevent recurrence. ”
BMY’s 12-month EBITDA margin of 43.68% is well above the industry average of 3.74%. Gross margin for the last 12 months was 78.81%, 40.8% higher than the industry average of 55.99%.
BMY’s four-year average dividend yield is 3.02%, and a future annual dividend of $2.28 translates to a 3.31% yield at current prices. The company’s dividend payout has grown at his CAGR of 9.2% and 6.9% over the past three and five years, respectively.
In the fourth quarter ended December 31, 2022, BMY’s U.S. sales increased 5.4% from the year-ago quarter to $7.93 billion. Combined sales of the in-line and new product portfolio increased 7.4% year-over-year to $8.97 billion. .
Additionally, total expenses were $9.55 billion, down 5.7% from the prior year, and non-GAAP EPS was $1.82. Non-GAAP net income attributable to BMY was $3.87 billion.
BMY’s revenue is expected to increase slightly year-over-year to $11.95 billion in the second quarter of its fiscal year ending June 2023. His EPS for the company in the quarter is expected to rise 8.8% year-over-year to $2.10. Additionally, the company has a surprising history of impressive earnings, having beaten consensus EPS and earnings estimates in each of the last four quarters.
The stock rose slightly during the day to close the last trading session at $69.36. The 24-month beta is 0.28.
It’s no surprise that BMY has an overall A rating. This translates into a strong buy in the POWR rating system.
There are A grades for value and B grades for stability, growth, emotion, and quality. Second in the industry.
In addition to the highlighted POWR ratings, you can access BMY ratings for Momentum. here.
Inventory to avoid:
SNDL Inc. (SNDL)
Headquartered in Calgary, Canada, SNDL manufactures, distributes and sells cannabis products. It operates through the Cannabis Operations and Retail Operations segments. The company focuses on manufacturing and marketing cannabis-derived medicines.
SNDL’s gross margin for the last 12 months was 19.07%, 65.9% lower than the industry average of 55.99%. Last 12 months CAPEX/Sales of 1.51% is 67.4% lower than the industry average of 4.62x.
SNDL’s operating loss for the third quarter ended September 30, 2022 was C$88.54 million ($65.04 million), an increase of 365% year-over-year. The net loss was C$98.84 million ($72.6 million). net income C$16.71 million ($12.27 million) in the same period last year.
It also reached a loss of C$0.41 per share, compared with EPS of C$0.08 in the year-ago quarter.
Analysts expect SNDL’s EPS to fall 19% year-over-year to minus $0.65 in 2022.
Over the past nine months, the stock has fallen 51.5%, closing its last trading session at $1.82. It has decreased by 21.9% over the past month. Its 24 month beta is 1.52.
SNDL’s weak fundamentals are reflected in its POWR rating. The stock has an overall D rating, equivalent to Sell on our proprietary rating system.
Stocks have an F grade for momentum and stability, and a D grade for sentiment and quality. It ranks 134th in the industry.
click here To access additional SNDL assessments of growth and value.
Consider this before making your next trade…
We are still in the middle of a bear market.
Yes, some special stocks can go up. But most will fall as the bear market claws lower than ever before.
That’s why we need to discover new things.”2023 stock trading planwas created by 40-year investment veteran Steve Lightmeister. So he explains:
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Watch this timely presentation before making your next trade.
AZN shares were unchanged in pre-market trading on Thursday. Year-to-date, the AZN is down -2.45%, while the S&P 500 index is up 3.22% over the same period.
About the author: Kritika Sarmah
Her interest in high-risk instruments and passion for writing led Kritika to become an analyst and financial journalist. She has a Bachelor of Commerce degree and currently she is working on the CFA program. With her groundbreaking approach, she aims to help investors identify untapped investment opportunities.
post 2 pharma stocks to buy now and 1 pharma stock to consider selling first appeared StockNews.com